Car sales in India rose 1.39 per cent in February, the first time since September, following the recently announced excise duty cut on vehicles and positive sentiment created by the Auto Expo.
The Society of Indian Automobile Manufacturers (SIAM), which released the data today, however, remains cautious on the outlook for the industry.
“It will take some more time to see if the negative trends have reversed. We are getting feedback from companies that footfalls have increased,” SIAM Director-General Vishnu Mathur told presspersons here.
The excise duty cut and the Auto Expo have created positive sentiment but it is too early to say if all this would translate into sales, he added.
SIAM said domestic car sales increased 1.39 per cent to 1,60,718 units in February from 1,58,512 units in the year-ago month.
“Month after month, numbers are so volatile, there is so much fluctuation that there is no trend visible,” Mathur said.
In the interim Budget on February 17, Finance Minister P Chidambaram cut the excise duty to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles; 24 per cent from 30 per cent for SUVs; 20 per cent for mid-sized cars from 24 per cent, and 24 per cent for large cars from 27 per cent.
During the April-February period of this financial year, car sales declined 4.6 per cent, while the broader passenger vehicle segment witnessed a fall of 5.9 per cent.
“The current fiscal is going to end on a negative for passenger and commercial vehicles. Even if sales are much better in March, it won’t be able to erase the effect of rest of the fiscal, which has been largely negative,” Mathur said.
Market leader Maruti Suzuki India posted a marginal increase in domestic sales at 84,595 units last month from 83,865 units in the same month a year earlier.
Hyundai Motor India sold 33,875 units, marginally lower than 33,936 units despatched in February 2013.
Sales of commercial vehicles were down 29.84 per cent to 47,982 units in February, the 10th straight monthly decline.
“The next fiscal should be better as the new Government would come in and roll out policies on various sectors, including mining. Moreover, various projects could also get approval,” Mathur said.
Source:- thehindubusinessline.com
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